Stocks Bounce As China Eases Quarantine Measures

London, (UrduPoint / Pakistan Point News - 28th Jun, 2022 ) :Stock markets jumped Tuesday and oil prices rallied further as China slashed the quarantine time for visitors, fuelling hopes of recovery for the world's second largest economy.

The news came as Beijing and Shanghai appeared to have contained a Covid outbreak that had forced officials to impose lockdowns that compounded global supply chain snarls, further pushing up inflation.

Authorities said inbound travellers would have to quarantine for only 10 days instead of three weeks.

The news boosted share prices, already striving to rebound from recent sharp losses triggered by fears of a global recession.

"The Covid crisis appears to be rapidly retreating in China," noted Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.

"The prospects of rapid recovery for the world's second largest economy is helping lift miners, as metals prices rise in expectation of a surge in demand in the commodity-hungry economy." Oil prices, a major driver of the soaring inflation, jumped around two percent Tuesday on fears of further supply tightening, in addition to prospects for higher Chinese demand.

This comes after G7 leaders agreed to work on a price cap for Russian oil, a US official said Tuesday, as part of efforts to cut the Kremlin's revenues.

International sanctions placed on Russia following its invasion of Ukraine are taking their toll.

Moody's ratings agency has confirmed that Russia defaulted on its foreign debt for the first time in a century, after bond holders did not receive $100 million in interest payments.

- Key figures at around 1030 GMT - London - FTSE 100: UP 1.2 percent at 7,246.58 points Frankfurt - DAX: UP 0.8 percent at 13,286.57 Paris - CAC 40: UP 1.2 percent at 6,121.49 EURO STOXX 50: UP 0.9 percent at 3,569.57 Tokyo - Nikkei 225: UP 0.7 percent at 27,049.47 (close) Hong Kong - Hang Seng Index: UP 0.9 percent at 22,418.97 (close) Shanghai - Composite: UP 0.9 percent at 3,409.21 (close) New York - Dow: DOWN 0.2 percent at 31,438.26 (close) Brent North Sea crude: UP 2.3 percent at $117.74 per barrel West Texas Intermediate: UP 1.8 percent at $111.55 per barrel Euro/dollar: UP at $1.0590 from $1.0583 Monday Pound/dollar: FLAT at $1.2268Euro/pound: UP at 86.33 pence from 86.24 penceDollar/yen: UP at 136.01 Yen from 135.48 yen